Belmont vs Carlisle vs Rivervale vs Vic Park

[Catalyst]

We are considering getting our first IP in these areas, being close to city, airport and new stadium.

With a Buy & Hold strategy and $500k budget, it looks like we can only afford a 3x2 villa. Yield is not exciting. So hoping that CG will make this a worthwhile venture that will allow us to leverage it for future purchases. Fingers crossed.

Question is: which suburb has a better prospect for CG and appeal to tenants?

Plus what would you look for when buying villas? No strata fees. As new as possible for higher depreciation?

All feedback are much appreciated

 

[Big Dave]

When do you plan to buy your next IP after this one? You may be waiting a while for CG to increase for a villa. Are you looking at renovating to increase the value of the property?

If not you really are at the mercy of the market in that area which isn't a good thing as there is a lot of supply. Have a drive through and look at all the development going on.

 

[D.T.]

When do you plan to buy your next IP after this one? You may be waiting a while for CG to increase for a villa. Are you looking at renovating to increase the value of the property?

If not you really are at the mercy of the market in that area which isn't a good thing as there is a lot of supply. Have a drive through and look at all the development going on.

Nice nick

Yea, its pretty rare to see a house in some of those areas. There's 3-4 townhouses/villas on almost every block.

Out of those I think Carlisle would be the pick (good access to Belmont forum and Vic Park precincts without being on top of either), but due to supply I don't see much return in them.

 

[Catalyst]

When do you plan to buy your next IP after this one? You may be waiting a while for CG to increase for a villa. Are you looking at renovating to increase the value of the property?

If not you really are at the mercy of the market in that area which isn't a good thing as there is a lot of supply. Have a drive through and look at all the development going on.

Eeks! Not good Next IP perhaps in 2 yrs time.

What areas would you recommend for CG? Was also looking at the southern suburbs like Wilson, Parkwood, Riverton and Willetton. The Rossmoyne and Willetton school zone houses are quite pricey. $500k budget can probably get a 3x1 mostly older villas.

 

[Catalyst]

Yea, its pretty rare to see a house in some of those areas. There's 3-4 townhouses/villas on almost every block.

Out of those I think Carlisle would be the pick (good access to Belmont forum and Vic Park precincts without being on top of either), but due to supply I don't see much return in them.

Thanks Dave.

Should hv gone Forresfield, eh?

Where would u look if you were to buy anything in Perth? Will ask you about Adelaide once I get IP1 done and dusted

 

[hematite]

I live in the area and can offer some general tips:

*Rivervale - If looking here, then look for one on the 'top end' i.e. between Francisco and Gt Eastern Highway. Stay away from ones closer to the IGA on Kooyong Rd (tend to get some undesirables hanging around) I've also heard to stay away from Gerring Ct (some problems there).

The area is changing (i.e. new houses being built by owner occupiers on decent blocks (680sqm), however there are still remanents from the old days when Rivervale was quite bad (it still has a pretty high crime rate). Police presence and Belmont Council security patrol presence is pretty high which makes you feel a bit better.

Pros - Bus service is awesome, I get to the CBD in like 10-15mins. I can drive into the CBD in 8 mins or so. No airport noise. Very quiet on my street (people seem to be pretty quiet in Perth in general though). Seen 20% CG in 2 years for our place. Not so many villas on the top end. Close to airport (12 mins to domestic in the morning). Lots of parks nearby, easy to get to the parks by the river - really nice to walk on a warm summers evening.

If you have 100k more, you can pick up a house on a 680 sqm block.

 

[THEHEATH]

I live in Vic. Park. Fantastic place to live, lots of restaurants, cafes, pub etc. and I can be in the main street of perth in 6 or 7 minutes by car of public transport ( I do live down the city end though). My pick would be Vic park or Calrisle. Unfortunately in that price bracket though I don't think what's on offer is too good. So many pokey little villas with the stupidest floor plans! The mind boggles sometimes. If it were me, I would be looking at touch further out, St. james. Some big blocks and it is close to the uni's and hockey centre etc. Nearly bought myself one there not too far back , 750k it was a gem, huge block 4 bedroom house with a second downstairs lounge the size of a flat that my g/f and I were going to live in and rent out the other rooms. Would have cost us nothing to own. I'll be thinking about that one for the rest of my life! Good luck.

 

[Rixter]

Have you looked a couple suburbs down Albany Highway from Vic Park...in or adjacent to the satellite cbd of Cannington?..lower entry level with same CG prospects and higher increased yields.

 

[charttv]

I've owned PPORs and IPs in VP over the years, currently have an IP in Kewdale and my current PPOR is in St James.

it depends on the deal but I suspect that VP has better CG prospects long term in general based on the lifestyle factors such as its cafe strip, restaurant scene and proximity to the river.

 

[D.T.]

Have you looked a couple suburbs down Albany Highway from Vic Park...in or adjacent to the satellite cbd of Cannington?..lower entry level with same CG prospects and higher increased yields.

What makes Cannington a satellite CBD? Because it has a large shopping centre? It's services and amenities aren't any better/different to any other suburb's.

It also has a supply problem since all the houses are being traded in for 3-4 townhouses/villas, which translates to reduced capital growth from now on.

 

[Rixter]

What makes Cannington a satellite CBD? Because it has a large shopping centre? It's services and amenities aren't any better/different to any other suburb's.

The same things that make all the other satellite CBD's around the metro area satellite cbd's, like - East Perth, Subiaco, Joondalup, Midland..etc ie. Govt injecting money into infrastructure projects such as Arterial Roads, Public Transport hubs, Govt Depts etc with Major Shopping retail/commercial hubs, Medical, Educational & Recreational Facilities.

It also has a supply problem since all the houses are being traded in for 3-4 townhouses/villas, which translates to reduced capital growth from now on.

Well I guess time will tell...its been doubling in value every 10 years for a couple decades I know of, so demand has been soaking the supply.

 

[Catalyst]

I live in the area and can offer some general tips:

*Rivervale - If looking here, then look for one on the 'top end' i.e. between Francisco and Gt Eastern Highway. Stay away from ones closer to the IGA on Kooyong Rd (tend to get some undesirables hanging around) I've also heard to stay away from Gerring Ct (some problems there).

The area is changing (i.e. new houses being built by owner occupiers on decent blocks (680sqm), however there are still remanents from the old days when Rivervale was quite bad (it still has a pretty high crime rate). Police presence and Belmont Council security patrol presence is pretty high which makes you feel a bit better.

Pros - Bus service is awesome, I get to the CBD in like 10-15mins. I can drive into the CBD in 8 mins or so. No airport noise. Very quiet on my street (people seem to be pretty quiet in Perth in general though). Seen 20% CG in 2 years for our place. Not so many villas on the top end. Close to airport (12 mins to domestic in the morning). Lots of parks nearby, easy to get to the parks by the river - really nice to walk on a warm summers evening.

If you have 100k more, you can pick up a house on a 680 sqm block.

Thanks, Hematite, for the Rivervale info.

If villa prices continue to slide, perhaps it might be viable. Current median on REIWA is $613,600 with last 12 months growth of 7.6%

Will expand search to blocks of land. Viewed 80 St Kilda but the house was too nasty to help with holding costs

What is the demographics in the top end? Professional singles/couples without kids? Young, small families? Can't imagine my family of 3 older kids living in a villa. Haha.

 

[Catalyst]

I live in Vic. Park. Fantastic place to live, lots of restaurants, cafes, pub etc. and I can be in the main street of perth in 6 or 7 minutes by car of public transport ( I do live down the city end though). My pick would be Vic park or Calrisle. Unfortunately in that price bracket though I don't think what's on offer is too good. So many pokey little villas with the stupidest floor plans! The mind boggles sometimes. If it were me, I would be looking at touch further out, St. james. Some big blocks and it is close to the uni's and hockey centre etc. Nearly bought myself one there not too far back , 750k it was a gem, huge block 4 bedroom house with a second downstairs lounge the size of a flat that my g/f and I were going to live in and rent out the other rooms. Would have cost us nothing to own. I'll be thinking about that one for the rest of my life! Good luck.

Thanks THEHEATH

It is pricey in Vic Park, from my quick look on RE.com. Sigh.

Will check out Carlisle as well, to see if there's any potential for my budget. Crazy that $500k seems like a small budget when I read of $300k budgets in Brisbane

 

[Catalyst]

Have you looked a couple suburbs down Albany Highway from Vic Park...in or adjacent to the satellite cbd of Cannington?..lower entry level with same CG prospects and higher increased yields.

Thanks Rixter

Had a quick look at Cannington. It is more affordable but lots of 3x2 villas. What are your tips to get the optimal IP in a suburb like this?

Will view a few to have a better feel of the area (from an IP point of view...instead of shopping )

 

[Catalyst]

I've owned PPORs and IPs in VP over the years, currently have an IP in Kewdale and my current PPOR is in St James.

it depends on the deal but I suspect that VP has better CG prospects long term in general based on the lifestyle factors such as its cafe strip, restaurant scene and proximity to the river.

Current median on REIWA site for Vic Park is 690k, growth 1.8% in the last 12 mths. In Dec it was $697.5k, 4.1% growth.

Most of the neighbouring suburbs have higher medians. You're probably right that Vic Park can go further.

 

[Rixter]

What are your tips to get the optimal IP in a suburb like this?

Define in your mind your chosen purchasing criteria, budget and minimum rental yield requirement.

Set up your alerts in your preferred search engines so anything new to the market online comes to you instead of trawling the net.

Get out and about in the area and check it out at ground level..checking out the good pockets from the average pockets...make sure you get out of your vehicle and walk the streets. You can see so much more on foot.

Go to a few home open inspections to get a feel for what you're getting for you money.

I prefer the western side of Albany highway down to the Canning River.

The purchasing criteria must address the tenant needs in 3 areas - Security, Spaciousness & Comfort.

As such, security doors, grills, alarm, gates, roller doors etc for occupants and their property including vehicle/s. Their must be room to move inside the property - not small. Comforts in the form of cooling and heating.

Ideally the property to be near new but not OTP.

I hope this provides some food for thought.

Any questions or clarifications on the above feel free to skype or PM me.

 

[Jsmith17]

Agree, good security in all of these areas are essential. You may get a great tenant, but they won't stay if they feel unsafe in the area/street/house.

Do a drive by at dusk, and hang out near the places of interest.....tis amazing what you can pick up!

Good luck.

 

[westminster]

I'll weigh in my 2 cents. Its going to be hard to find something that meets all those criteria.

Have you considered buying one of the split off blocks and building so that it is new as you wanted, with some land component.

East Vic Park has some lots that would come in under $500k once you build a house on it.

Something like this

http://www.realestate.com.au/property-residential+land-wa-east+victoria+park-200999403

Alternatively look to Kewdale and see some of the opportunities there

http://www.realestate.com.au/property-house-wa-kewdale-117851967

 

[Catalyst]

Do a drive by at dusk, and hang out near the places of interest.....tis amazing what you can pick up!

The locals would know I don't belong in a split second. Haha

 

[Catalyst]

I'll weigh in my 2 cents. Its going to be hard to find something that meets all those criteria.

Have you considered buying one of the split off blocks and building so that it is new as you wanted, with some land component.

East Vic Park has some lots that would come in under $500k once you build a house on it.

Something like this

http://www.realestate.com.au/property-residential+land-wa-east+victoria+park-200999403

Alternatively look to Kewdale and see some of the opportunities there

http://www.realestate.com.au/property-house-wa-kewdale-117851967

The thought had crossed my mind before, Westie. But no guts to go down that route for now, as I don't even know how to do proper/thorough calculation for a straightforward buy...let along building something and making sure it is profitable

But it is intriguing that I could build something in East Vic Park that comes under $500k. Would that include holding costs and the various not-in-my-face costs that newbies might overlook

Do you think these 2 suburbs are worth looking at, Westie?